DRAM revenue fell to 8 year low in first quarter

Losses among DRAM makers mounted to $15.2 billion over last eight quarters, Gartner said

The global DRAM industry continued to shrink in the first quarter of this year as revenue fell to an eight year low and losses mounted, according to preliminary figures released by Gartner on Monday.

The market researcher said DRAM market revenue fell 41 percent year-on-year to US$3.57 billion in the first quarter, the lowest the industry has seen since the fourth quarter of 2001.

The first quarter figure also showed a decline of 18 percent from $4.38 billion in the fourth quarter of last year.

The DRAM industry downturn started two years ago after factory overbuilding led to a chip glut.

The global recession further hurt the DRAM industry by slashing sales of the product most of the chips go into, PCs.

Worldwide PC shipments fell 6.5 percent year-on-year in the first quarter, according to Gartner.

German chip maker Qimonda took the worst revenue hit during the quarter, Gartner said. The company declared bankruptcy early in the quarter and slashed production, selling chips mainly from inventory.

Samsung Electronics, the world's largest memory chip maker, performed best last quarter. Revenue at the South Korean company fell but it increased its market share lead.

"Samsung's financial muscle and technology lead give it an advantage other vendors can only dream about in such conditions," wrote Andrew Norwood, a senior chip analyst at Gartner, in the report.

Hynix Semiconductor and Micron Technology also experienced revenue declines during the quarter but increased their market share.

Hynix remained the second biggest DRAM maker, while Micron captured the third place ranking from Elpida Memory of Japan, according to Gartner.

Elpida slumped to fourth.

Losses among DRAM makers continued to mount during the first quarter. Major DRAM vendors lost a combined $2.5 billion in the quarter, Gartner estimated, compared to $2.9 billion in the fourth quarter of last year.

The companies have lost a total of $15.2 billion during the past eight quarters.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags memoryrevenuedram

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?